Krugman and the other DU types call this the ‘confidence fairy’. They actually believe this is a big bunch of bull and businesses don’t really care about the potential economic climate going south due to extreme government nonsense. Bunch of lunatics.
I think that a huge part of the problem is that these people simply don't understand the entire reason for a business... They believe with all their hearts that the reason for a business is to provide a good or service. It's NOT. The reason for any business is to make a profit doing something. Otherwise, there's no reason to go into business. And they don't understand this. A perfect example is their misunderstanding of "talk radio." They believe that the reason a radio station exists is to provide programming to the vast listening audience. It isn't. The reason for a radio station to be in business is to sell advertising, to generate revenue and hopefully a profit. They need to attract listeners that the advertisers will attract as customers. So radio stations try to have programming that will attract the most listeners. The more listeners in certain age and income levels that the programming attracts, the higher ad rates they can charge.
Krugman et al believe in the NPR model of radio broadcasting. They know what the people want to hear. They know better. The "dumb masses" simply don't know what's good for them, so it's up to the anointed elite to determine what they want and need.
Geez, this really is right out of Atlas Shrugged.
Mark